Sensex recovers 70 pts as Brexit fears ease slightly

Monday, Jun 20, 2016,11:55 ISTBy metrovaartha AAA

Mumbai | In volatile deals, the benchmark BSE Sensex recovered from its early losses Monday to trade higher by 70 points as new polls showed Britain remaining in the European Union, even as investors remained cautions in view of RBI Governor Raghuram Rajan saying no to a second term.

Fresh buying was seen in teck, IT, realty, industrials, oil&gas and telecom sectors on revival in Asian cues. Oil prices extended gains in Asia on the back of a weaker US dollar and easing fears of a UK exit from the EU. Meanwhile, the rupee pared its initial losses but was trading down by 29 paise at 67.37 against the American currency in late morning deals.

On Saturday, Rajan had said no to a second term in the post, a surprise decision the industry and opposition parties term as nation’s loss. On the day, the Sensex resumed lower at 26,497.11 and hovered in a range of 26,750.23 to 26,447.88 before quoting 26,697.43 at 1100 hours, showing a rise of 71.52 points or 0.27 per cent from its last close. In pre-open trade, the Sensex was down 200 points. The NSE Nifty was trading up by 13.80 points or 0.17 per cent to quote at 8,184.

Major gainers were Infosys 1.67 per cent, TCS 1.43 per cent, Larsen 1.41 per cent, ONGC 1.19 per cent and Hero MotoCorp 1.05 per cent. However, Axis Bank fell by 1.11 per cent followed by Power Grid 0.96 per cent and Asian Paints 0.93 per cent.